Late last week, US domestic hollow structural sections (HSS) mills began reducing prices once again following rampant deal-making and static activity. In late December, at least one mill officially reduced prices by $1.00 cwt. ($22/mt or $20/nt) to better match prices with demand; and at the end of last week, Atlas Tube announced another $1.00 cwt. price reduction, bringing asking prices down to $46.50 cwt. ($1,025/mt or $930/nt) ex-mill, where spot deals had already been heard since early January. The general spot price range is now $45.50-$46.50 cwt. ($1,003-$1,025/mt or $910-$930/nt) ex-Midwest mill, down about $0.50 cwt. ($11/mt or $10/nt) in the last two weeks and prices slightly lower have been heard from some mills with on-the-ground inventory or especially light order books.
In addition to lackluster demand, domestic flat rolled spot price erosion in the last couple weeks is also dramatically contributing to the current lack of confidence in domestic HSS prices. Until the flats market firms--which may be sooner rather than later if rumors of a price increase come to fruition--HSS spots are likely to remain under downward pressure. Despite the possibility that domestic prices could decline in the immediate future, import offer prices from Turkey are currently low enough to encourage some offshore buyers. US buyers indicated that the $36.00-$37.00 cwt. ($794-$816/mt or $720-$740/nt) DDP loaded truck in US Gulf ports range, unchanged in the last two weeks, is still low enough below US prices to keep import activity steady.